The Higgins Group at Morgan Stanley Building relationships based on understanding, integrity, accountability and mutual trust.
401 East Market Street Charlottesville, Virginia 22902 434-244-0123 / MAIN 800-682-5852 / TOLL-FREE 434-244-0017 / FAX fa.smithbarney.com/higginsgroup/ Higginsgroup@morganstanley.com
The Higgins Group at Morgan Stanley There comes a point when managing your assets can easily turn into a full-time job or even become an overwhelming challenge. As your life evolves, not only does your financial strategy become more complex, but your options for implementing it increase as well. Frequently, evaluating these options and choosing wisely among them may require the time and expertise of several financial professionals. In such situations, it can make sense to partner with a Morgan Stanley Financial Advisor who not only can understand your diverse financial needs, but has access to customized programs that can be utilized to provide you with best-in-class solutions. As a designated Family Wealth Director, our mission is to provide you with advisory services that include, and extend beyond, investment management. We take pride in being able to offer our clients access to Morgan Stanley s, and other third parties, skilled staff who specialize in disciplines such as wealth transfer, asset protection and philanthropic services. Our goal is to understand your vision, preferences and unique circumstances so that we can work with you to help develop an overall wealth management strategy that meets your needs. This brochure is designed to provide you with a brief overview of the types of services that we, and our external partners, offer. It touches on a number of topics, such as family governance and dynamics, trust services and various investment opportunities from which you can choose to help realize your overall goals. We look forward to working with you to develop a personalized strategy that will help provide you with the secure financial future you need and deserve. THE HIGGINS GROUP 3
The Strength of Morgan Stanley Since its founding in 1935, Morgan Stanley and its people have helped redefine the meaning of financial services. The Firm has continually broken new ground in advising its clients on strategic transactions and in providing new opportunities for individual investors. Our clients have always been at the heart of everything we do and we continue to serve them with ingenuity, integrity and the highest standards of excellence. Thanks to the dedication and hard work of more than 60,000 Morgan Stanley employees, our premier client franchise is stronger than ever. According to James Gorman s 2012 Annual Letter to Shareholders, Morgan Stanley posted 2011 net revenues of $32.4 billion and reinforced our position in the marketplace as a trusted advisor to our clients. In 2011, Morgan Stanley was #1 or #2 in M&A and Equity Underwriting. The Firm ranked #1 in completed M&A, advising on eight of the top 10 transactions. We continue to be the underwriter of choice for equity offerings and initial public offerings and led the largest U.S. equity offering and largest global IPO of the year. According to the Morgan Stanley 2010 Annual Report, Morgan Stanley had over $1.7 trillion in client assets under management. Indeed, if there is a single characteristic more than any other that has defined Morgan Stanley throughout the past 75 years, it is the quality of our people and the passion and excellence with which they have built the Firm and served our clients. That was the defining characteristic in 1935 when we opened for business and it is what defines us today with more than 1,200 offices in 42 countries.* *As of January 20, 2011 4 MORGAN STANLEY
Meet the Professionals Left to right: Tom Grierson, Patty Woodie, John Higgins 6 MORGAN STANLEY
We would like to thank you for entrusting The Higgins Group at Morgan Stanley and our firm to be your advisor. John Higgins, Senior Vice President- Wealth management, is a designated Family Wealth Director and Financial Advisor. Tom Grierson, Vice President-Wealth Management, is a Financial Advisor and Certified Financial Planner by the College of Financial Planning. Both designations require demonstrated professional knowledge and experience in a range of specialties including estate planning, traditional and alternative investments, control and restricted securities, lending, hedging and monetization and investment banking. Patty Woodie, a Senior Registered Associate, has worked closely with John and Tom for more than 15 years and with over 25 years of experience in the financial services industry, she brings an administrative expertise to the team that is second to none. While your investment portfolio is always at the forefront of our minds, life is not simply a numbers game. The concerns that matter most to you avoiding conflict and entitlement in the family, developing passions to inform your philanthropy and the strategies to support it, or successfully transferring family wealth require a special knowledge, experience and commitment. The Higgins Group is dedicated to ensure that your personal and family values will always remain at the heart of your overall wealth management strategy. Working closely with you and your tax, legal and other personal advisors, the team will design strategic and tactical strategies to many of your most important concerns about your financial and human capital. THE HIGGINS GROUP 7
Our Commitment to You As your Family Wealth Directors, we will ask questions that help us find out about you, the kind of lifestyle you enjoy, what you want to accomplish for you and your family, what worries you and what you re passionate about. And, to help you reach your overall wealth management goals, we are committed to providing you with the following: Exceptional personal service Commitment to objectivity Dedication to simplicity Meaningful integration of life and wealth Exclusive client events In the end, our aim is to provide you with a plan where we: Design comprehensive and customized investment strategies Bring the specialists to you Implement and monitor results 8 MORGAN STANLEY
Wealth Planning Morgan Stanley Financial Advisors have a long history of providing wealth planning for high net worth individuals and institutional clients. Our overall strategy involves an integrated approach covering such diverse topics as: The Wealth Planning Process consists of the following four basic steps: Family governance and dynamics Philanthropic services Business succession Wealth transfer Personal asset protection* Lifestyle advisory* Private healthcare advisory* Investment opportunities We assist families with the goal of maintaining unity and affluence across generations. By providing you with personalized and consultative guidance throughout the process, we believe this goal can be achieved. *We may refer to a third party or an affiliate 10 MORGAN STANLEY
1Discovery Identifying your values and goals Family Risk tolerance 4Monitoring Ongoing evaluation and reporting Track progress toward goals Set/follow guidelines for liquidity, asset allocation Notification when portfolio strays outside guidelines Performance reporting Online access The Wealth Planning Process 2Analysis & Recommendations Helping you to build an action plan Identification of liabilities and risks Coordination with outside advisors Action plan growth, preservation and / or wealth transfer 3Implementation Providing access to services and providers Trusts Philanthropy Family mission and bylaws Asset management
Trust Services As part of a broad perspective on wealth planning issues, trusts can play a key role. Trusts are legal arrangements whereby control over property is transferred to a person or organization (the trustee) for the benefit of someone else (the beneficiary). Trusts are created for a variety of reasons, including tax savings and improved asset management. Trust services are offered by the Personal Trust Division of Morgan Stanley Private Bank, and through outside providers. There are several different kinds of trusts which are designed to accomplish specific objectives. Some common types of trusts are listed below: Living trusts Testamentary trusts Grantor trusts Charitable trusts Life insurance trusts Special needs trusts Our aim is to educate you on the benefits of various types of trusts. 12 MORGAN STANLEY
Morgan Stanley Alternative Investments As the world s largest wealth management organization, Morgan Stanley lobal network affords us the ability to offer suitable clients a vast number of alternative investment options. We leverage our unique position and our affiliates to source innovative strategies from among the best investment minds in the business. We employ rigorous due diligence to identify, evaluate and select each alternative investment product on our platform to assure that we only introduce our clients to what we believe are the best managers in the industry. Our alternative investments platform includes a variety of investment options that may be offered on a placement or advisory basis. Each of the offerings listed on the following page is supported by a group of professionals who bring with them a combination of expertise and industry knowledge. Your choices will depend on your goals, objectives and risk tolerance. 14 MORGAN STANLEY
private equity Private equity investments are capital invested in companies on a private placement basis and are not available in the public markets. Private equity investments run the gamut of corporate finance strategies, ranging from financing start-up companies to debt instruments in mature companies. Sub-categories that comprise private equity include: leveraged buyouts, venture capital, mezzanine financing, distressed debt, real estate, development capital and special situations. exchange funds Exchange funds allow investors a means to diversify a low-cost-basis and/or restricted stock position by pooling their low-cost-basis stocks in one fund without triggering a taxable event. In exchange for contributing their stock to the fund, each investor owns a pro-rata share of the fund. After a set period of time typically seven years investors can redeem their interest in the fund. At that time, they will receive a non-taxable distribution of a diversified pool of stock from the fund s portfolio. hedge funds Hedge funds are one of the fastest growing investment alternatives to traditional equity and bond portfolios. The term hedge fund is applied to investment vehicles with a wide range of strategies and objectives. However, most hedge funds aim to generate positive returns independent of the market environment. real estate funds Real estate funds serve as a vehicle for pursuing a broad array of direct equity and debt investments in real estate assets, portfolios, joint ventures and operating companies. They may be designed to maximize current income or may be opportunistic in nature such as the development of properties with turnaround potential. Hedge fund advisors have more flexibility than traditional advisors in structuring their portfolios due to limited regulatory and investment restrictions. Most hedge funds are able to use strategies such as purchasing currencies and futures contracts. As a result, skilled hedge fund advisors have the potential to enhance investment returns while striving to protect your capital in weak market conditions.
The Firm makes no representations regarding the suitability or otherwise of the products or services provided by any Service Provider(s). There may be additional service providers who offer this service, and you may wish to identify such other providers for comparative purposes. If you choose to contact a healthcare advisory Service Provider(s), we recommend that you interview such Service Provider(s), do thorough due diligence, and make your own independent decision. Risk Considerations for Alternative Investments. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Funds of hedge funds typically have higher fees than single manager vehicles as they are subject to an additional layer of fees charged by the fund of funds manager. Alternative investments involve complex tax structures, tax inefficient investing and delays in distributing important tax information. Alternative investment funds are often unregulated and are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. Investor Eligibility Requirements. For the types of alternative investments discussed here, it is important to note that such investments are not suitable for all investors and, depending on the investment, they typically require the investor to be an accredited investor and/or a qualified client or purchaser. Diversification and asset allocation do not assure a profit or protect against a loss. Morgan Stanley and its Wealth Advisors do not provide tax or legal advice. This material is not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals should consult their personal tax and legal advisors before making any tax- or legal-related decisions. With respect to fixed income securities, please note that, in general, as prevailing interest rates rise, fixed income securities prices will fall. Investing in the markets entails the risk of market volatility. The value of all types of investments may increase or decrease over varying time periods. There is no guarantee that these strategies will succeed. The information is intended to illustrate products and services available. The strategies do not necessarily represent the experience of other clients, not do they indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. 2012 Morgan Stanley Smith Barney LLC. Member SIPC. 2011-PS-3137 07/12 7281250 10 / 12